Saving for 1st house.

DOMI1990

Hello all!
I'm currently saving like crazy to buy my 1st home.
I basically want to know what account are going to give me best returns.

I've ended up with so many accounts I use yolt so I can see as much as possible in one place but here goes

I currently have a Halifax help to buy isa that's due to transfer to skipton Lisa and I've used the full allowance for this tax year and got the money for the next tax year 18/19.
A hsbc regular saver 5% full £250
Halifax regular save 2.5% full £250
Leeds building society regular saver 2.55% full £250.
Also a small amount in a hsbc online saver just so it's separate from my normal current account which im looking to move for better returns.

I found the virgin e saver and prefer regular savers as the interest is higher.
I'm not looking to lock in my money for more than a year tops.

I have a pot of money that could be used for the Nationwide flex direct or whatever it is but I'm unsure of stipulations ie setting up an additional current account purely to get savings rate etc.

If anyone knows of any decent accounts where I can help achieve my deposit it would be really appreciated.

Alexland

Nationwide FlexDirect is fine for using as a 5% savings account for a year - just deposit £2500 then each month cycle £1000 into it, move £250 into the associated 5% regular saver then transfer £750 out to the next bank account.

FlexDirect is now a one-time use offer (unless you have a partner to open a joint account) so don't open it until you have £2500 ready to go in. The regular saver can be renewed each year.

Remember the Skipton needs to be open 12 months since the initial contribution before it can be used with bonus and without penalty to buy a qualifying property. You might want to delay your contribution next tax year to get more interest elsewhere.

Kim_13

There are some additional regular savers featured in the MSE guide: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts

I would also consider the interest paying current accounts, see the MSE guide here: https://www.moneysavingexpert.com/banking/compare-best-bank-accounts?_ga=2.70187344.1798824297.1513112874-1010848097.1513112873#interest

What sort of time period do you anticipate buying in? I ask as any new current accounts you open will result in a credit search that takes a year (with Equifax and Experian) and 2 years (Call Credit) to fall off of your credit reports, though their impact will diminish with time prior to this.

DOMI1990

Thanks my Lisa has been open since August.
Again I do not want to mark my credit file too much at the moment as I can buy in September if I find something.

Just concerned to hear bank of England base rate could increase in May.

I'm hoping to get a hsbc fixed rate 10 year mortgage across 25 years but actually pay off my mortgage in the 10 year period.

Alexland

I think it's unlikely that having 2 banks accounts and multiple savings accounts all operated proficiently will have a negative impact on your credit file. Whenever I open a bank account I always decline the overdraft option to reduce the amount of available credit that will show.

10 years is a long time to be on a fixed rate. Make sure the terms allow you to overpay as much as you are likely to need to and that it is portable incase you want to move house.

Alex

badger09

In addition to Alexland's comments above, I would advise against chasing too many switch incentives in the 6 months before a likely mortgage application.

I would also suggest retaining your longest held current account as mortgage lenders like to see the stability of a well run current account. That doesn't however, prevent you opening another couple of current accounts if that boosts your savings;)

Kim_13

What current account(s) do you have at the moment? You may be able to work with what you have and simply upgrade it/them to a better account with the same provider. I was able to upgrade a Nationwide FlexAccount to a FlexDirect without a credit search.

Opening new savings accounts won't be a problem, as they may run ID checks and anti money laundering checks, but will not credit search. Have you any local building societies which might have a decent regular saver on offer? There are a few mentioned towards the end of the above article.

DOMI1990

I have hsbc advanced account had it for years back when the regular saver paid 8% I think.

I'd prefer to have the 10 year fix mortgage with hsbc. Have this in principle currently.

I checked allows 10 % overpayments too I am to clear mortgage within this period or get skipton 7 year fix and pay mortgage within that also it just picking the one with less or no fees.

Thanks all for the support.